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RUDIKE [14]
3 years ago
8

Project X has cash flows of $8,500, $8,000, $7,500, and $7,000 for Years 1 to 4, respectively. Project Y has cash flows of $7,00

0, $7,500, $8,000, and $8,500 for Years 1 to 4, respectively. Which one of the following statements is true concerning these two projects given a positive discount rate? (No calculations needed)
a.Both projects have the same future value at the end of Year 4.

b.Both projects have the same value at Time 0.

c.Both projects are ordinary annuities.

d.Project Y has a higher present value than Project X.

e.Project X has both a higher present and a higher future value than Project Y.
Business
1 answer:
kondaur [170]3 years ago
4 0

Answer:

e. Project X has both a higher present value and a higher future value than Project Y.

Explanation:

The project X cash flows are higher in initial years than of project Y. The present value of project X cash flows will be greater than project Y. The time value of money of project X will be greater than Project Y.

The future value of Project X will also be higher than project Y because it has higher cash flows in earlier years. When future value will be calculated the project X will give the higher Future value than project Y.

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Answer:

The correct word for the blank space is:  primary.

Explanation:

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8 0
3 years ago
true or false filtering data in Excel online keeps all data on the screen and highlights the content that fits your criteria​
mrs_skeptik [129]

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4 years ago
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XYZ Corporation loaned $600,000 to another corporation on December 1, 2020 and received a 3-month, 8% interest-bearing note with
jeka94

Answer:

Dr Interest Receivable 4,000

Cr Interest Revenue 4,000

Explanation:

Preparation of XYZ Corporation Adjusting entry

Since the XYZ Corporation loaned the amount of $600,000 to another corporation on December 1, 2020 in which XYZ Corporation received a 3 month and 8% interest-bearing note with a face value of $600,000, the first step to take is to find the interest bearing note which is calculated as 4,000(1/12×8%×600,000) and the second step is to record the transaction as :

Dr Interest Receivable 4,000

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8 0
3 years ago
An investor originally paid $22,000 for a vacant lot twelve years ago. If the investor is able to sell the lot today for $62,000
MArishka [77]

Answer:

b.9%

Explanation:

Formula for annual rate of return formula is as follows;

Annual rate of return = [ (New value/ Initial value)^(1/t) ] -1

t = the total holding period of investment = 12 years

Old value = 22,000

New value = 62,000

Next, plug in the numbers to the formula;

Annual rate of return; r = [ (62,000/22,000) ^(1/12) ] -1

r = [2.8182 ^(1/12)] - 1

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3 years ago
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Lady_Fox [76]

Answer:

A. True

Explanation:

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3 years ago
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